Stock-index futures slide after industrial data

First two big economic reports of the session can’t stem mild losses

KateGibson

NEW YORK (MarketWatch) — U.S. stock futures fell on Friday, with caution ahead of consumer-sentiment data and a day after a rally boosted by a report the Federal Reserve would soothe tapering fears next week.

Futures for the Dow Jones Industrial Average
US:DJU3
lost 19 points to 15,098, while those for the Standard & Poor’s 500 index
US:SPU3
eased 2.2 points to 1,628.70. Futures for the Nasdaq 100 index
US:NDM3
fell half a point to 2,956.50.

Are central banks confusing markets?

(2:40)

After another drop in the Nikkei, have the central banks stopped communicating with the markets? Economics editor David Wessel discusses. Photo: AP.

The University of Michigan and Thomson Reuters consumer sentiment index is slated for release at 9:55 a.m. Eastern. Economists polled by MarketWatch expect the index could climb to 84.7 in June, the best reading since July 2007. That report is due out at 9:55 a.m. Eastern Time. Read a preview.

On Thursday,. the Standard & Poor’s 500 index
US:SPM3
had its best day in five months, rising 23.84 points, or 1.5%, to 1,636.36. The Dow industrials
DJIA, -0.32%
finished up 180.85 points, or 1.2%, to 15,176.08.

Bloomberg

Fed Chairman Ben Bernanke

Markets shook off heavy losses from Asia after solid retail sales data and decent jobless claims numbers. Late-session gains kicked in after Wall Street Journal reporter Jon Hilsenrath, considered an influential voice on central-bank policy, said Federal Reserve Chairman Ben Bernanke will likely choose next week’s meeting to try to soothe market fears that the central bank is headed towards the easing exit in a hurry.

“Yesterday’s article contained little new information for markets, and Hilsenrath was referring more to the Fed’s commitment to keep rates low rather than making reference to its quantitative-easing program,” said Jim Reid, strategist at Deutsche Bank.

“But seeing the S&P 500 and 10-year U.S. Treasury yields rally 7 points and 5 basis points respectively in the minutes after the article hit newswires is probably a fair reflection of the market’s day-to-day sensitivity to Fed tapering talk that has prevailed since May,” Reid said in a note to investors.

Shares of Groupon Inc.GRPN, +0.21%
rose in premarket trading after Deutsche Bank analysts upgraded shares to buy from hold, saying the company should be able to grow its billings by 20% and sentiment for the company has improved.

Shares of Restoration Hardware Holdings Inc.RH, +0.13%
also jumped. The home-furnishings retailer reported adjusted profit after the closing bell Thursday that beat forecasts. It also announced plans to launch two new businesses, which will provide additional opportunity for growth.

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